The South African Farmers Development Association (SAFDA) has applauded the signing of Phase Two of the Sugar Industry Master Plan (SIMP), describing it as a major milestone for the future sustainability and transformation of South Africa’s sugar industry.

The agreement was signed during a meeting of the Executive Oversight Committee held at the sugar industry headquarters in Mount Edgecombe, Durban. The first phase of the Master Plan, launched in 2020, focused on stabilizing the industry during a period marked by challenges such as the sugar tax, Covid-19, social unrest, and economic pressures.

Led by the Department of Trade, Industry and Competition (the dtic), the Master Plan brings together key industry stakeholders to strengthen and protect the sugar value chain through a shared framework of commitments and responsibilities.

A key focus of the second phase will be supporting small-scale farmers, who remain central to the Master Plan process. SAFDA noted that small-scale growers continue to benefit from initiatives such as the Premium Price Payment, which provides around R70 million annually in additional support to farmers.

Speaking during the signing ceremony, SAFDA Executing Chairman Dr Siyabonga Madlala emphasized the need for diversification opportunities within the industry, including the potential production of bioethanol. He also reaffirmed SAFDA’s commitment to transformation and ensuring that small-scale farmers remain protected and included in future developments.

Phase Two of the Master Plan is expected to focus on areas such as trade protection, diversification, and the advancement of small-scale growers, while addressing ongoing industry challenges including sugar imports, global market pressures, and the financial instability facing some sugar millers.